Some major changes are happening in the medical insurance marketplacethat will change the whole notion of health insurance for Americans. ‘I’ll skip Medicare because it’s too expensive’ – soon enough, that won’t be something people say. According to a recent Federal law, there will be a significant reduction in the insurance premiums through ACA exchange.
It’s no secret that healthcare expenses tend to cost leg and arms especially to Americans who deliberately avoided signing up for health insurance in the last few years. In fact, there was a 5.3% hike in medical expenses compared to last year. It helps make up at least 22% of the American population who are at high financial risk because of that.
Understandably so, because for many, the health insurancecost is not generally affordable.
Drawbacks of the ACA act
Despite its favorable structure made for covering the maximum number of people, it raveled in controversies for many reasons. Young adults in the high-income category specifically could not seek many benefits from the act that was passed more than a decade ago. The main problem is the increase in income tax.
- There was a tax increase of 0.9% on Medicare Part A for those whose income is above $200,000 (unmarried individuals) and $250,000 (married individuals).
- There has been some tax hike on Blue Cross Blue Sheild companies.
- Also, one has to pay extra for maintaining a Health Savings Account for expenses that the insurance did not cover.
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All of these are part of the new 21 tax policies.
But because of the persistence of COVID-19’s destructive aftermath and the emergence of other new diseases, people are now realizing the value of health insurance for themselves and their families. The government is making every possible effort to get more people into the ACA health insurance plans through the American Rescue Plan.
This Plan was a noble initiative by the states to secure Americans across the states with not only affordablemedical insurance plans but also providing premium coverage. This federal plan comes under the COBRA subsidy.
How is it helping people?
It came as a boon to Californians as the Federal government was funding $7.7 billion alone to Covered California. People were saving up 78% of their monthly premiums. Now with additional funding of $3 billion, the cost plunged to as low as $1 per month of premium for high-quality insurance.
The enrollment period was valid through 31st May, which has now been extended. With this initiative, people can put hundreds of dollars back into their pockets. They only have to switch to Covered California within the last date.
Why you should think again about your health insurance
Now is a great time to look at health insurance again if you have been putting it off because you think it is too hard to understand or too expensive. With the latest changes, getting covered is now cheaper and easier to understand. Plan, even if you do not go to the doctor very often. It could save you a lot of money in an emergency. You can relax and keep your savings safe with the right coverage, from prescription drugs to surgery you did not plan for.
Spend some time thinking about what you can do. Without a doubt, health insurance is now a necessity rather than a nice-to-have. You should protect both your health and your wallet.
